A period of up to 15 minutes is allocated for the asking and answering of questions. This may be extended at the discretion of the Chairman with the agreement of the majority of those present.
To deal with any questions on notice from Members of the Council, in the order in which they have been received.
Minutes:
Question submitted by Councillor P. M. McDonald
“Would the Chairman please inform me of the monies spent over the last two years on external legal advice and any retaining costs associated with legal advice?”
The Leader responded that in 2014/15 expenditure had been £36,658 and in 2015/16 the expenditure had been £53,744.
Question submitted by Councillor S. R. Colella
“Does the Leader agree with the independent Alliance Group that this Chamber and the people of Bromsgrove should never again be faced with the debacle that surrounded the 9th June 2016 agenda item on West Midlands Combined Authority and that the leader of the Council should be responsible for the accuracy of the Agenda and for the professional and competent discharge of Council matters.”
The Leader responded that he agreed.
Question submitted by Councillor C. A. Hotham
“In February 2013 this Council voted to acquire a 50% stake in Parkside for £230,000. It has always been known that Stamp Duty Land Tax (SDLT) would be payable and this liability is a straightforward percentage calculation. For reasons that are unclear the purchase was only completed on 29th July 2016. This delay could have serious consequences on the amount of SDLT due.
SDLT is payable on the value of the acquisition on completion date. As the value of our share of the building has been stated in the latest accounts as £3,584,000 it is possible that rather than BDC paying the budgeted figure of £2,300, it is liable for a figure closer to £170,000. Furthermore, BDC has yet again failed to abide by the law and is now late paying this tax incurring penalties and punitive interest. This is potentially a gross waste of BDC Council tax payer money.
Bearing in mind the qualified account opinion about BDC’s inability to provide value for money, could the Leader please explain why it has taken so long to acquire the freehold and what impact this has had on the SDLT liability and why BDC is in breach of HMRC rules over such a simple calculation?
The Leader stated that that the Stamp Duty Land Tax Return had been completed and submitted to the Tax Office together with the appropriate fee of £2,300. The Council had been obliged to make an additional payment of £200 as a penalty for late payment.
The late payment was a result of the delay between the Council’s “de facto” acquisition of the building and the paperwork associated with the transfer. The County Council had confirmed that the delay was a result of competing priorities and it had been felt that because the transaction was between two Local Authorities and all elements involving third parties had been completed it was relatively low risk and was therefore not prioritised.
The Leader reported that the County Council had now been working closely with this Council’s legal team to rectify the position. The application for registration had now been submitted by the County Council who had given an assurance that any further issues which may arise would be dealt with as a priority. The County Council had agreed to meet the cost of the £200 penalty for late payment.